The mediating effect of eco-innovation on low-carbon supply chain practices toward manufacturing firm performance in Malaysia

Abstract

Purpose – This study aims to provide a novel approach to examining the connection between several aspects of low-carbon supply chain practices (LCSCPs), eco-innovation (EI) and the performance of manufacturing firms in Malaysia. Design/methodology/approach – The current study employed a quantitative research strategy, utilizing survey data collected from a sample of 120 manufacturing firms located in Malaysia. The main aim of this study was to analyze the research framework and test the proposed hypotheses. Findings – The results of the study indicate that EI has a mediating role in the link between LCSCP and manufacturing firm performance (MFP). EI serves as a mediating factor in the association between MFP and four components of LCSCPs, specifically low-carbon product design, low-carbon process improvement, low-carbon purchasing and low-carbon logistics. Practical implications – The results of this study hold significant potential for supply chain professionals in their endeavors to decrease carbon emissions. Practitioners can help eliminate carbon footprints (CFs) by selecting the right LCSCP techniques that support EI and MFP. When creating low-carbon management methods in supply chain management (SCM), practitioners must take into account the potential mediating role of EI. Originality/value – To date, this work is one of the first efforts to investigate the role of EI as a mediator between LCSCP and MFP. Moreover, this research adds to the existing knowledge and improves understanding of how low-carbon development is being implemented in Malaysia, with the ultimate objective of achieving carbon neutrality by 2050.

Keywords

• Low-carbon supply chain practices
• Eco-innovation
• Manufacturing firm performance
• Supply chain management